In another big financial blow to Russia amidst the rising sanctions against it globally, the London Stock Exchange (LSE) has suspended trading in 27 companies with strong links to Russia, including Russia¡¯s biggest lender Sberbank and the world¡¯s largest gas producer Gazprom.
As per TheGuardian, LSE said it was moving to block trading in the companies that include Severstal, Russia¡¯s largest steel and mining company run by Alexei Mordashov, the country¡¯s richest man.
Rosneft and VK, the parent company of social networking sites including VKontakte, which is bigger than Facebook in Russia, is also barred.
The list also includes Russia¡¯s largest gold producer Polyus and Novolipetsk Steel, one of the four largest steel companies in Russia.
As per TheGuardian, the companies trade financial instruments in London including global depositary receipts (GDR) and American depositary receipts (ADR), but not the ordinary shares, which are traded in on Russian stock exchanges, where they have their primary listings.
The LSE reportedly said it was taking this action ¡°in light of market conditions, and in order to maintain orderly markets".
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The chief executive of LSE Group (LSEG), David Schwimmer, reportedly said that 7 Russian companies with London GDRs had not been suspended as this depended on further sanction. As per him, their suspension could also be triggered by an inability to maintain an orderly market.
The 7 companies whose GDRs continue to trade are Russia¡¯s largest transmission company Federal Grid, the telecoms provider Rostelecom, the residential property developer Etalon, the supermarket chain O¡¯Key, the fertilizer company Acron, the food retail chain Magnit and the investment company Sistema.
Also, the LSE chief said that it is not yet decided what to do about the 150 staff at its Moscow operation. The company also has 9 staff in Ukraine.?
LSEG, which said its own operations in Russia and Ukraine account for less than 1% of total income, added it would ¡°continue to keep this situation under review¡±.
Here¡¯s the complete list of all 27 companies who LSE has been suspended for trading-
EN+,Novolipetsk Steel,Gazprom, Gazprom Neft, Lukoil, Norilsk Nickel, Taftneft,Polyus
Severstal, Rosneft, Sberbank, VK, Ros Agro, Surgutneftegas, TCS Group, Rosseti, PhosAgro, RusHydro, Magnitogorsk Iron and Steel Works, Novatek, Fix Price Group, Global Ports Investment, Globaltrans Investment, HMS Hydraulic Machines & Systems Group, Lenta International, Medical Group, X5 Retail and VTB
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